Non-seasonally adjusted three-month absorption rates (units rented after construction of the property is complete) for fourth quarter completions (rented during the first quarter of 2014) were effectively unchanged at 60% compared to 58% a year earlier. Absorption rates for rental apartments rose coming out of the recession but established a more stable range since 2011.

In contrast, condo and co-op completions remain at historically low levels, with 2,100 for-sale multifamily homes completed during the fourth quarter of 2013. The 3-month absorption rate for for-sale multifamily dipped for condos completed at the end of 2013 and sold during the first quarter of 2014, falling to 71%.

The SOMA data also reveal that for properties with five or more units approximately 15,000 Low-Income Housing Tax Credit or other federally subsidized units were completed in the fourth quarter of 2013. This is up from the 8,500 such units completed a year prior. The affordable share, LIHTC and other subsidized units, of multifamily completions was 30% for fourth quarter completions.